The settlements cancel about $22.1 million in real estate lease obligations at mid-year; net of sublease income, those obligations were $9.7 million, the company said. The company's future real estate lease obligations will be about $42,000, net of anticipated sublease income, to be paid at the end of this month.
The local firm, which sells corporate software that correlates customer-buying patterns, said that in connection with the lease settlements, it will take a one-time $625,000 charge during the third quarter that ends this month.
Net Perceptions also said that earlier this month it paid $42.2 million in a cash distribution to its shareholders. Last month, in announcing the shareholder payout, Net Perceptions said the company has no prospects of reporting profits. In fact, the company has never made a profit. While its fortunes flourished during the dotcom boom, and it spent on expansion accordingly, anticipating a lucrative business.
Earlier this summer, the company said it had signed agreements to sublease approximately 106,000 sf of its existing facilities and has terminated its lease commitment for its New York City facility. In the third quarter of 2003, the company terminated its lease for its Berkshire, UK, location.
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